TRANSACTIONAL RISK

Strategic buyers, private equity firms and deal participants face a number of risks related to mergers and acquisitions (M&A) that are now addressed by transactional risk insurance products. Once an esoteric segment of the insurance sector, transactional risk insurance is a mainstream component of M&A deals in the US and Canada. Given that trends indicate that the demand for transactional risk insurance is rising as global M&A value continues to increase, it is more important than ever for M&A participants to understand the value that this insurance can provide.  

Marsh’s US and Canada Transactional Risk practice develops solutions to help you understand, quantify, and mitigate risks in M&A activity. These transactional risk insurance solutions help create value for investors throughout the investment lifecycle. 

How can Marsh’s US and Canada team help me mitigate M&A risks?

Our US and Canada team placed over 1,000 transactional risk insurance policies on 584 closed transactions in 2020, representing almost $20B in limits.

The US and Canada Transactional Risk Practice at Marsh is comprised of 30 dedicated insurance professionals whose sole focus is R&W insurance, tax insurance, and other M&A-related insurance products. The team consists of former M&A lawyers, bankers, and seasoned risk management professionals who provide best-in-class service on the most complex M&A transactions, possessing deep expertise in all facets of M&A risk management, and transactional risk insurance including:

• Reps & warranties insurance.
• Tax insurance.
• Contingent liability insurance and contingent risk insurance.

Marsh’s US and Canada team provides M&A participants a critical edge over other risk advisors as we offer:

• Dedicated transactional risk expertise. Marsh’s experience working on M&A deals can help identify potential challenges during the deal process for which insurance and other strategies can offer solutions. We can also help you build insurance programs with terms and conditions aligned to your specific risks.

• Market knowledge, relationships, and insights. Not every insurer is the same, and it is important to select the right one given the nature of your unique transaction. Marsh can help you understand the risk appetites, preferences, and capabilities of various insurers and help guide you through the underwriting process.

• Robust data and analytics. Along with our experience in working on previous transactions, Marsh’s peer benchmarking and other analytical tools can inform critical decisions about how to structure insurance programs, including selecting appropriate coverage limits.

• Claims experience. Marsh’s history of working on complex transactional risk claims uniquely positions us to provide guidance in the event things turn contentious with your insurer following a loss

To learn more about how transactional risk solutions can help your business, click the Contact Us button on the right-hand side of this page to get in touch with a member of our team.